Principles and Functions of Management

Prof (Col) Dr R N BasuAdviser, Hospital Planning and Management

MedicaSynergie, Kolkata Formerly:

Prof & Head, Dept. of Hospital AdministrationArmed Forces Medical College, Pune

AndProf & Head Dept. of Hospital Administration

Kasturba Medical College, Manipal

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Management Process• Most important area of human activity• Managers see that individuals can make their best

contribution to group activity• Why Group Activity?

– People form group to accomplish aims they could not achieve as individuals

– Man has limitations– These are physical, biological and psychic limitations– Man found it necessary to cooperate with others– Also, everyone wishes to accomplish personal goal satisfaction to

maximum possible extent with least expenditure of resources– This desire to accomplish goal satisfaction efficiently through

cooperation applies to all group action be it business, military, religious, charitable, social or other objectives.

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ManagementDefinitions• The creation and maintenance of an internal

environment in an enterprise where individuals working in groups can perform efficiently and effectively toward the attainment of group goal

Functions• Planning• Organizing• Staffing• Directing• Controlling

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• As managers, people carry out managerial functions

• Management applies to any kind of organization• It applies to managers at all organizational

levels• The aim of all managers is the same: to create

surplus• Managing is concerned with productivity– This implies effectiveness and efficiency

Nature of Management

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The Six Health Systems Building Blocks

WHO6

Leadership and Management in Health SystemLeadership and Management in Health System

7WHO

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Henry Fayol’s 14 Principles of Management

Principles1. Division of work

2. Authority and Responsibility

3. Discipline

4. Unity of command

Explanation1. This is the specialization that

economists consider necessary for efficiency

2. Authority should be commensurate with responsibility

3. Directed at achieving obedience, application, energy and the outward mark of respect

4. Employees should receive orders from one superior only

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Contd….

5. Unity of direction

6. Subordination of individual to general interest

7. Remuneration

5. Each group of activities with the same objective must have one head and one plan

6. Self explanatory

7. Should be fare and afford the maximum possible satisfaction to employees and employers

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8. Centralization 8. Individual circumstances will determine the degree that will give best overall yield

9. Scalar chain 9. Flow of authority from top to bottom. Should not be short-circuited

10. Order 10.A place for everything and everyone

11. Equity 11.Loyalty and devotion should be elicited from personnel by a combination of kindness and justice

Contd….

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12.Stability of Tenure 12.Unnecessary turnover is the cause and effect of bad management

13. Initiative 13. Thinking out and execution of a plan. It is one of the keenest satisfaction for an intelligent man

14. Esprit de corps 14. In union there is strength

Contd…

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Planning• Most basic of all management functions• All managers at all levels has planning responsibilities• Planning is deciding in advance what to do, how to

do it, when to do it, and who is to do itNature of Planning• Contribution to objective• Primacy of planning• Pervasiveness of planning• Efficiency of plans

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Types of Plans• Objectives – end towards which activities are aimed• Policies – which guides or channels thinking and actions in

decision making• Strategies – It is the broad overall concept of an enterprise

operation• Procedures – It is a customary method of handling future

activities. Essentially, chronological sequence of required action

• Programmes – A complex of goals, policies, rules, tasks, task assignments, steps to be taken – necessary to carry out a given course of action

• Budgets – “Numerical plan”

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Importance of Planning• To offset uncertainty and change• To focus attention on objectives• To gain economical operation• To facilitate controlSteps in Planning• Being aware of opportunity• Establishing objectives• Premising• Determining alternative courses• Evaluating alternative courses• Selecting a course• Formulating derivative plans

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Organizing• Organizing is the grouping of activities necessary to

attain objectives, the assignment of each group to a manager with authority to supervise it, and provision for coordination horizontally and vertically in the enterprise structure

Span• Structure of an organization basically depends on

span of control. It means the number of subordinates a manager can effectively supervise

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Effective Span

• Depends upon various factors:– Subordinates training–Delegation of authority–Planning–Rate of change–Use of objective standards–Communication techniques–Amount of personal contacts

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Staffing

•The personnel function is especially concerned with the The personnel function is especially concerned with the development of a highly motivated smoothly functioning development of a highly motivated smoothly functioning workforce.workforce.

•Personnel management is a subsystem of the Personnel management is a subsystem of the

management system.management system.

•To have well qualified motivated employees in To have well qualified motivated employees in

adequate number available at the right time, careful adequate number available at the right time, careful

advance planning is necessary. This is called advance planning is necessary. This is called

MANPOWER PLANNINGMANPOWER PLANNING19

Components

(a) Projection of future needsProjection of future needs

(b) Job Analysis(b) Job Analysis

(c) Recruitment(c) Recruitment

(d) Selection(d) Selection

(e) Training and development(e) Training and development

(f) Promotion(f) Promotion

(g) Transfer(g) Transfer

(h) Retirement(h) Retirement

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• Requirement of a large number of highly trained labors often creates severe recruitment problem.

• Organizations attractiveness

• A well known organization offering attractive salary and perks will have no recruitment problem

• Economic condition• In economic depression labor supply is large

Contd …..

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TrainingAll employees periodically need some training. The scope and intensity varies. Training is an ongoing and continuous process.

Types of training

Induction Training

Aspects

a) Opportunity for familiarization with task.

b) Provides information about policies and rules.

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a) Introduces to fellow employees.b) Relationship of their job and overall

operation.c) Helps overcoming fear and anxiety.d) Best time to train - employees are

receptive.e) Shapes future work attitudes.

Contd ….

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Learning new techniques and concepts

Remedial training.

Aiding displaced employees.

Training for advancement

Apprenticeship

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Grievances•Grievance means any dissatisfaction arising out of any activity, policy, supervision or service connected with the organization.•Grievance needs to be handled promptly.•Delay gives rise to dissatisfaction.•More often grievance is based on emotion.•Unresolved grievances may snowball into conflicts.•Organization should have well laid out grievance procedure.•Handling of grievance is basically a responsibility of line managers.

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DISCIPLINE

Best discipline is self discipline

Normally people will live up to the rule

Possibility of discipline will stimulate individuals to win over

their lazier self

If employees perceive rules as reasonable and just, compliance is

automatic

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4. Advance Warning

– To accept without resentment discipline should be:• With clear warning

• Clear warning for quantum of penalty for a given offence.

Contd….

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Retention of Nurses(Nurse-Friendly Hospital – Criteria)

1. Control of nursing practice– Activities are structured to facilitate nursing

standards of care and are evidence-based practice.2. Safety of the work environment– Facility demonstrates a concern for the health and

safety of nurses.3. Systems exist to address patient care concerns– Systems exist to evaluate and resolve issues

related to nursing practice and quality of care.

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Contd ……4. Nurse orientation– Orientation program is competency-based and

considers the education, experience, and strengths/weaknesses of nurses.

5. Chief nursing officer– Activities of CNO in management of nursing

services are supported by hospital administration.6. Professional development– Professional development program exists to

facilitate ongoing educational needs to maintain and/or further develop professional expertise.

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Contd ….7. Competitive wages– Nursing salaries are competitive, are market

adjusted, and recognize outstanding performance and professional commitment.

8. Nurse recognition– Individual nurse merit and excellence are

recognized.9. Balanced lifestyle– Facility recognizes the need of nurses to

balance their work and non-work life.

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Contd ….10.Zero tolerance policy for nurse abuse– Physician abuse of nurses is not tolerated.

11.Middle management accountability– Facilitation of leadership competency among

direct-care supervisors and middle management occurs through a delineated leadership program.

12.Quality initiatives– Commitment to evidence-based practice is

evident.

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Leading• To direct subordinates effectively, a manager is concerned

with motivation, communication, and leadership• Definition• Directing is the interpersonal aspect of managing by which

subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise objectives

• This is a difficult function as manager is dealing with a complex of forces about which not enough is known and over many of which he has no control

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LeadershipDefinition• It is the process of Directing and

influencing the task related activities of group members

• Power Bases of Managers–Reward Power–Coercive Power–Referent Power– Expert Power

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Approaches to Leadership• Leadership traits• Effective leadership behaviour• Situational perspective of leadership• Traits– It was commonly held earlier that leaders are:

• Braver• More aggressive• More decisive and • More articulate

• Researchers failed to uncover any traits that clearly and consistently distinguish leaders from followers

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Leadership Function and Styles• Two major functions:– Task related or problem solving– Group maintenance or social function

• Two leadership styles:– Task oriented

• These managers direct and closely supervise subordinates to ensure that the task is performed to their satisfaction

– Employee oriented• These managers try to motivate rather than control subordinates• They encourage group members to perform tasks by allowing

them to participate in decisions that affect them and by forming friendly, trusting and respectful relationships with group members

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Contingency Approach

• Situational perspective identified various factors that can influence leadership behaviour

• Paul Hersey and Kenneth Blanchard developed life cycle theory of leadership– Leader has to vary his style as the

employees move through four phases of maturity.

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Controlling

• Definition

–Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are being accomplished

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Basic Control Process

• Involves three steps– Establishing standards–Measuring performance against these

standards–Correcting variations from standards and

plans

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Desired Performance Actual Performance Measurement of Actual Performance

Identification of Deviations

Analysis of Causes of Deviations

Programme of Corrective Action

Implementation of Correction

Comparison of Actual Performance against

Standards

FEEDBACK LOOP OF MANAGEMENT CONTROL

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